source_product Archives | Page 8 of 773

Q: What amount of money is considered a windfall?

The amount of money that is considered a windfall will vary depending on your circumstances. If you are just starting out or earning a lower income, $500 might be cause for celebration. Typically, a windfall is considered $1,000 or more, and in some cases, it could be a major sum of six figures or more.

Q: What can you do with a $100K windfall?

With a $100,000 windfall, you might pay off high-cost debt, stash money for future educational costs for yourself or your child, save for retirement, or invest the money or buy real estate with it.

Mar

2025

Financial Windfall: Definition and Ideas on Use

By Kylie Ora Lobell | Budgeting & Goals, Growing Wealth, money | Comments Off

You just came into a cash windfall. You’re happy about this, but you aren’t exactly sure about what to do with it. Should you spend it? Save it? Invest it?

The answer will depend on the size of the windfall and your current financial situation and goals. Here are some ideas for things you can do with a financial windfall to ensure that you are handling it in the smartest way possible.

Key Points

• A good way to use a windfall is to pay down high-interest debts, such as credit card balances.

• It’s also wise to build an emergency fund with at least three to six months of living expenses.

• Consider putting the funds in a high-yield savings account or investing in stocks or bonds for future growth.

• You might allocate funds to personal goals like professional development, starting a side business, or home improvements.

• Another good use for a windfall is donating to a charity for a potential tax deduction and to support causes you care about.

What Is a Financial Windfall

While there’s no one specific definition for a financial windfall, it typically means that you’ve received some unexpected money of a significant amount. For some people, a windfall could be a few hundred dollars; for others, it could be millions.

The key component of a windfall is the element of surprise — you may be surprised by receiving any money at all, the amount of the money, or both. Generally, a windfall isn’t money you’ve factored into your regular income and budget. This can make it a major plus, but it can also lead to some financial challenges, along with some major decisions to make.

Examples of Financial Windfalls

Financial windfalls can come from a variety of sources. Here are some common examples of windfalls:

• Lottery or prize winnings

• Employee bonus

• Tax refund

• Inheritance or life insurance payout

• Major successes in investing

• Profit from selling a property or business

• Injury or lawsuit settlement

💡 Quick Tip: Help your money earn more money! Opening a bank account online often gets you higher-than-average rates.

3 Tips to Help You Make the Most of Your Money Windfall

If you are fortunate enough to have a windfall land in your lap, you’ll need to decide if you’re going to spend, save, invest, donate the money, or some combination of the above. The following steps can help you come up with a plan that makes the most of your newfound cash.

• Get professional advice: Depending on the size and source of your windfall, you might owe taxes on it and it might push you into a different tax bracket. Consulting with an accountant or financial planner can help you identify the implications.

• Take it slow: While it’s exciting to have cash coming your way, it’s wise to take some time and reflect on how the money would be best spent versus deciding “Dinner’s on me!” for you and your 10 best pals to celebrate. For instance, could your windfall lower or wipe out some debt? Could it be invested? Don’t let the adrenaline rush drive you to make too quick a decision. Take some time to clarify your goals.

• Think long-term: If you’ve received a sizable sum, it may be tempting to quit your day job to travel or take on a passion project. Again, it could be wise to seek financial counseling before you make that type of leap. What sounds like a major sum may not actually be enough to fully finance your dreams. It’s important to look at the financial implications of a major life change carefully.

Remember That Taxes May Be Due on Your Windfall

Depending on the source of your windfall, it may be subject to income taxes. Tax law regarding windfalls is complicated, however, so it’s a good idea to consult an accountant or other tax professional to make sure you understand how much your windfall is actually yours to keep.

Understanding Tax Implications Based on the Source of the Windfall

Whether or not you owe taxes on a windfall will depend on where your windfall is coming from. Here’s a look at some examples:

• Inheritance: In general, any inheritance you receive does not need to be reported to the IRS. However, you may owe state taxes if the amount exceeds a certain threshold.

• Life insurance payout: Proceeds you receive as a beneficiary of a life insurance policy typically aren’t taxable, but if the proceeds have accumulated interest, taxes may be due on that interest.

• Lottery/prize winnings or large bonus: If your windfall is from a lottery, other prize, or large bonus, you are typically taxed at your ordinary income tax rate. This means you will pay taxes on your windfall based upon your tax bracket.

• Sale of property or a business: Profits from selling real estate or a business are generally taxed at the long-term capital gains rate, depending how long you owned the asset.

• A large cash gift: You typically do not have to pay taxes on a windfall that was given to you as a gift; the giver is responsible for paying any gift taxes.

What to Do With a $500 Windfall

Let’s say the amount of money you received was $500. While it isn’t a ton of money, it’s still significant enough that you should figure out what to do with it. Here are a few ideas for what to do with a small windfall.

1. Investing in Real Estate

Did you know that you can become a real estate investor with just $500? Real estate investment trusts (REITs) allow you to invest in real estate on a small scale. Similar to mutual funds, REITs are companies that own a mix of properties and typically pay dividends to investors. Although there is risk involved in investing in REITs, it might be a good way to get your feet wet if you’re interested in real estate investing.

2. Meeting With a Financial Advisor

Hiring a financial advisor to help you learn how to plan for your financial future might be a good use of this money. Financial advisor fees vary: Some charge a flat fee, some charge hourly, some are commission-based. If this professional will be managing a portfolio for you, they may charge 1% to 2% of the portfolio’s value.

3. Buying a New Wardrobe

You could refresh your wardrobe with your new supply of cash. Upgrading your clothes could give you the confidence to go after your professional goals. Or you might splurge on some clothes you’ve been eyeing that give you a self-esteem boost.

4. Traveling Somewhere Cheap

You might plan a weekend getaway or road trip for only $500. Throw in your credit card points or rewards you’ve accumulated to bump up your budget.

5. Investing in a Certificate of Deposit

Another thing you can do with a $500 financial windfall is put it into a certificate of deposit (CD). This is a type of savings account that holds a fixed amount of money for a set period of time and generally pays more than a regular savings account.

6. Getting Your Car Fixed

Have you been putting off car repairs because they’re too expensive? Now that you have $500, it might be time to invest in your vehicle so it’s less likely to break down when you’re on the road.

7. Buying Renter’s Insurance

If you’re a renter, your personal property is not covered under your landlord’s homeowners insurance policy. If you don’t have renter’s insurance, you might use your windfall to buy yourself some peace of mind. The average renter’s insurance cost in the U.S. is $148 per year, which means your windfall could insure your possessions for at least the next three years.

8. Purchasing a Life Insurance Policy

If your family depends on your income, life insurance helps protect them in the event that you pass away. The average cost of a life insurance policy is $26 per month. That means you could pay for the whole year up front with your $500 windfall. Typically, life insurance rates increase as you age and your risk of dying increases. So it’s likely to be less expensive to purchase life insurance while you’re young, rather than waiting until you feel like you can afford it.

9. Taking a Professional Development Class

While private colleges and universities might be too pricey, you may be able to find a class online or at your local community college for less than $500. Finding something that is relevant to your career may even help you move up the ladder at your job.

What to Do With a $1,000 Windfall

Did you receive a $1,000 financial windfall? Here are some ideas for how you might use this sudden influx of cash.

10. Getting Started on Your Emergency Fund

An emergency fund is a separate savings account that you can tap to cover or offset the expense of an unexpected expense or loss of income. If you haven’t started building your emergency fund, or it’s not as robust as it should be, your $1,000 windful could boost your safety net.

11. Hiring an Estate Planning Lawyer

Another important thing you could do with a $1,000 cash windfall is meet with an estate planning lawyer to write your will, establish a trust, and determine your power of attorney. You may feel some peace knowing your family will be protected and your assets will be distributed according to your wishes.

12. Opening a 529 Plan

A 529 plan offers a way to save for your child’s college education. With $1,000, you can get a nice head start on college savings. Your money will grow tax-free and if you withdraw the money for qualified educational expenses, you won’t pay any taxes on those withdrawals.

13. Doing Home Improvements

With $1,000, you could do a small home improvement project like replacing your curtains, painting a room or two, putting down a new kitchen floor, or sprucing up your backyard. If you do the work yourself, you may be able to stretch your financial windfall money even further.

14. Donating It

If there’s a nonprofit you’ve always wanted to support, you might consider using your $1,000 windfall to make a donation. Your money could make a big difference. Plus, you may also be able to deduct the contribution on your taxes (if you itemize).

15. Opening a High-Yield Savings Account

Savings accounts rates are averaging 0.41% APY as of December 16, 2024, according to the FDIC. A high-yield savings account, however, may pay 3.00% APY or higher. Plus, savings accounts are typically insured by the FDIC up to $250,000 per depositor, per insured bank, for each account ownership category, in the event of bank failure.

💡 Quick Tip: Most savings accounts only earn a fraction of a percentage in interest. Not at SoFi. Our high-yield savings account can help you make meaningful progress towards your financial goals.

16. Saving for Retirement

If you have a 401(k) but haven’t contributed much so far, your windfall could help you increase your savings rate. Or, if you’re eligible to contribute to a traditional or Roth individual retirement account (IRA), you might open one with your $1,000 windfall to boost your retirement savings.

17. Investing in Your Side Hustle

To make money on your $1,000 financial windfall, you might use it to start a low-cost side hustle. Maybe you’re a freelance graphic designer but you need to buy some software to be able to do more detailed work. Or, perhaps you need to purchase a domain name and hire a developer to create a business website. With this initial investment, you may be able to bring in much more money and improve your finances.

What to Do With a $5,000 Windfall

You just got a cash windfall of $5,000. Now what? Here are some ideas.

18. Saving Up for a Down Payment

In some cases, you only need to put 3% to 5% down on a home. That means you could conceivably buy a $150,000 home using your $5,000 financial windfall money as your down payment. More realistically, you could use your windfall to add to money you’ve already saved for your down payment.

19. Paying Off Credit Card Debt

The average consumer credit card debt balance is $6,730. A $5,000 windfall could pay most of that bill off in one fell swoop and could save you a significant amount of money in interest.

20. Investing Via Robo-Advisors

Do you want to invest your $5,000 cash windfall, but you don’t know where to start? Robo advisors create a diversified investment portfolio based on your investment goals and the level of risk you’re willing to take.

21. Investing in Blue-Chip Stocks

You might also consider using your windfall to invest in blue-chip stocks. These stocks are from well-established and financially stable companies that typically pay dividends to investors.

22. Investing in Bonds

Though they carry some risks, bonds are considered relatively safe and stable investments. When you purchase a bond, you’re lending money to an entity like a government or corporation. In return, you receive the interest payments at regular intervals. At the end of the repayment period, you get your original investment amount back.

23. Taking a Vacation

With $5,000, you and your family could potentially take a great vacation within the U.S. For example, your windfall might be enough to fund an RV excursion, urban getaway, visit to a theme park, or a beach retreat. Check out sites like Expedia, Costco Travel, and Booking.com for deals.

What to Do With a $10,000+ Windfall

If you received a cash windfall of $10,000 or more (lucky you!), here are some things you could do with it.

24. Opening a Money Market Account

You could use your $10,000 to open a money market account, which typically earns a higher interest rate than a regular savings account.

25. Paying Off Student Loan Debt

The average federal student loan debt in the U.S. is $37,853 per borrower. If you have a $10,000 financial windfall, you could put a nice dent in your student loan balance.

26. Trying Peer-to-Peer Lending

Using a peer-to-peer lending platform, you could lend your financial windfall money to someone who is looking for a loan and potentially earn a good return. Just keep in mind that this type of lending involves risks.

27. Making Mortgage Payments

You could make a large principal-only payment toward your mortgage loan with a $10,000 cash windfall. This can help you pay off your loan off sooner and save a significant amount of interest. First, verify that there are no prepayment penalties tied to your loan.

28. Going to College

While $10,000 won’t cover a bachelor’s degree unless you also get grants or scholarships, you may be able to earn your associate’s degree at your local community college with your financial windfall money. Or it might cover several classes at a public university that could lead to career advancement.

29. Starting Your Business

Let’s say you want to do more than start a side hustle, and you’re ready to open a small business. A $10,000 windfall could help you get the ball rolling on your business without needing to borrow money. You might consult with a successful business owner in your industry for guidance on how best to allocate your money.

30. Increase Contributions to Your Retirement Account

This can help you build your nest egg, while also reducing your taxable income, which could help offset taxes owed on your windfall (if applicable).

31. Make a Move

If you’re looking to be closer to work or simply want to live in a quieter — or busier — location, a $10,000 financial windfall could be enough to cover the cost of hiring movers.

The Takeaway

Receiving a financial windfall opens up all kinds of possibilities. You might pay down debt, take a vacation, invest the funds, pursue higher education…or even do a little of each. Though it’s tempting to spend your windfall right away, it’s a good idea to step back and think through the wisest way to use your newfound cash. In the meantime, you might park the money in a high-yield savings account. This allows you to earn an above-average interest on your windfall but still keeps the money accessible.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 3.80% APY on SoFi Checking and Savings.

FAQ

What amount of money is considered a windfall?

The amount that’s considered a windfall can vary from person to person. For some, it could be a few hundred dollars. For others, a windfall might be thousands or even millions of dollars.

What to do with a $50,000 windfall?

There are many ways to use a $50,000 windfall. You could pay down debt, put a down payment on a home, pump up your retirement account, start or add to a college savings account, do a home renovation, or use it as seed money to start a business.

What can you do with a $100K windfall?

With a $100,000 windfall, you might pay off your mortgage, put a down payment on a home, build your retirement or college savings fund, invest the money for long-term growth, or a combination of the above.

Should you save or invest a windfall?

It depends on your financial situation and goals. If you have high-interest debt, a good use of a windfall is to pay it off. Next, you might start or top off your emergency fund. Whether to save or invest the rest will depend on your goals. For short-term goals, like saving for a vacation, wedding, or new car, consider putting the funds in a high-yield savings account. For goals that are at least five years off (like retirement, buying a house, or a child’s college education) investing may be a better choice.

How can you avoid common mistakes with a windfall?

To avoid common mistakes with a windfall, it’s important to pause and make a plan for how to use the money, rather than spend impulsively. Smart ways to use a windfall include paying off high-interest debt, building an emergency fund, and investing for long-term goals like retirement or a child’s college education.

About the author

Kylie Ora Lobell

Kylie Ora Lobell is a personal finance writer who covers topics such as credit cards, loans, investing, and budgeting. She has worked for major brands such as Mastercard and Visa. Read full bio.

You may also be interested in:

What to Do With Extra Money? 5 Smart Moves to Consider

What to Do With an Inheritance: A Comprehensive Guide

Pay Down My Debt or Save Money: What to Consider

Photo credit: iStock/TARIK KIZILKAYA

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2025 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

SoFi members with direct deposit activity can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. SoFi members with direct deposit are eligible for other SoFi Plus benefits.

As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 3.80% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Separately, SoFi members who enroll in SoFi Plus by paying the SoFi Plus Subscription Fee every 30 days can also earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. For additional details, see the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus.

*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at sofi.com/legal/banking-fees/.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Third Party Trademarks: Certified Financial Planner Board of Standards Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, CFP® (with plaque design), and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.

SOBNK-Q125-090

Mar

2025

Routing Number vs Account Number: When to Use and How to Find

Routing vs Account Number: What’s the Difference?

By Sheryl Nance-Nash | Budgeting & Goals, Financial Independence, money | Comments Off

If you’re looking for your bank routing and account numbers, they are likely easier to find than you may think: You can locate them on your checks or by logging into your financial institution’s app, for instance.

That said, you probably don’t want to broadcast these digits to too many people. Your routing and account numbers are the keys to your banking kingdom.

Your account’s routing number designates which financial institution holds your money, while your account number identifies your own unique checking or savings account. As you go about your financial business, you will require these numbers for many transactions, from enrolling in direct deposit at your workplace to signing up for online bill pay.

Key Points

• A routing number is a nine-digit code that identifies a bank or credit union.

• An account number is a unique identifier for your specific bank account.

• Routing numbers are used for various financial transactions like direct deposit, bill pay, and wire transfers.

• Account numbers are private and should be kept secure to prevent fraud.

• You can find your routing and account numbers on checks, through online banking, in-app, or by contacting your bank.

What Is a Routing Number?

A routing number is a sequence of nine digits that identifies a bank or credit union, and each banking institution has a unique number. Here are some facts about routing numbers and how they work:

• A routing number is also sometimes referred to as an ABA number, in reference to the American Bankers Association, which assigns them. Routing numbers are only issued to federal or state-chartered financial institutions that are eligible to maintain an account at a Federal Reserve Bank.

• Your bank’s routing number and ACH routing number may or may not be the same digits. Check with your bank to be sure.

• The routing number required for making a wire transfer often differs from the routing number that is printed on your checks. That number can be found online or by contacting your bank.

• A small bank may only have one routing number, while a larger financial institution may have several (they typically vary by state). An online bank, which operates without physical branches, will typically have one routing number.

Purpose of a Routing Number in Banking

The purpose of a routing number is to identify the financial institution that is responsible for the payment and ensure that funds are sent to the right place in a financial transaction.

Routing numbers are generally required when reordering checks, paying bills, setting up direct deposit, or making tax payments. Making sure you have the right digits will help ensure smooth transactions.

What Is an Account Number?

While the routing number identifies the financial institution where your account is held, the bank account number represents your specific account. While anyone can find your bank’s routing number, your account number is private; that’s a key difference in routing vs. account numbers. Here are some other points about account numbers to know:

• Typically between nine and 12 digits, your account number acts as a road map of sorts for your bank, letting them know where to deposit or withdraw money, whether that’s a checking account or a savings account.

• If you have two different accounts at the same financial institution, you will have two different account numbers. The routing number for these accounts, however, will be the same.

• Because your account number can unlock access to the funds in your checking or savings account, it’s critical that you keep it safe.

Role of an Account Number in Transactions

Whether you are receiving a paycheck, making online purchases, or setting up autopay, your account number plays a key role. While routing numbers identify your bank, account numbers ensure that money is correctly credited to or debited from the right account.

When You’ll Need a Routing Number or Account Number

You’ll need to know your account number and routing number for a variety of everyday financial transactions. These may include:

• Setting up direct deposit of your paycheck

• Setting up autopay

• Setting up direct deposit of Social Security or other government benefits

• Paying a bill online

• Setting up autopay

• Check processing

• Sending or receiving a wire transfer

• Sending up a peer-to-peer payment app or service

• Transferring funds between accounts at different banks

• Making payments from your bank account by phone

• Ordering new checks

• Linking a budgeting app to your bank account

Finding Your Bank Routing and Account Numbers

If you need to find your routing and account numbers, you have several options:

Looking at a Check

You can find your routing number and account number printed on the bottom of your checks.

You’ll see three groups of numbers (often separated by spaces and/or symbols). Typically, reading left to right, the first number (nine digits) is the routing number; the next group of numbers (usually nine to 12 digits) is the account number; the third is the actual check number.

check image with numbers

Contacting Your Bank

If you need your bank routing and account numbers and don’t have access to a check, you can call your bank (or stop into a branch) and ask a customer service representative to provide you with the numbers. Since your account number is private information, you will likely have to provide identifying details to prove you are who you say you are to gain access to this number.

Note: If all you need is the routing number, you can easily find it on your bank’s website.

Accessing Your Online Account

If you log into your bank account online or in-app, you should be able to get your banking details. Your account number may be encrypted (meaning you can only see the last four digits). If that’s the case, you can typically get the full number by downloading a recent bank statement. Or, there may be a prompt you can click in order to see the full number.

Protecting Your Routing and Account Numbers

Although anyone can locate your bank’s routing number, your account number is not public information. Just like you are mindful about who sees your Social Security number, the same goes for your bank account number. You want to make sure that someone doesn’t use your bank account and routing number without authorization.

Tips for Keeping Your Banking Information Secure

Here are some ways to keep sensitive banking information safe:

• Avoid sharing your banking details unless necessary. To protect yourself from potential bank fraud, you generally don’t want to share your account number with any person or business unless you absolutely need to. Also wise: not sharing pictures of checks you’ve written on social media, even if it is for the first payment on your dream car.

• Store physical checks in a secure place. Since checks contain both your routing and account number, it’s a good idea to keep your checkbook tucked away in a safe place, not sitting out in the open. Also be sure to shred old checks and paper statements before throwing them away.

• Enable multi-factor authentication for online banking. Two- or three-factor authentication requires additional information beyond a password, such as a code sent to your mobile phone or a fingerprint scan, for account access. You’ll typically find this option inside the account settings.

• Regularly monitor your accounts. It’s a good idea to review your bank statements monthly and check your online banking once a week. This allows you to pick up on any suspicious transactions and nip any potential issues in the bud.

Recommended: How to Write a Check

What to Do if Your Information Is Compromised

If you suspect fraud or unauthorized access to your bank account:

• Contact your bank immediately. Call customer service and inform the representative of any unauthorized banking transactions as soon as you notice them.

• Change your login credentials: It’s a good idea to choose a new (unique) password for your bank account. Also consider setting up multi–factor authentication if you haven’t already.

• Review your recent transactions: Comb through recent activity on your bank account and make a list of any transactions you don’t recognize, noting the date and details. You’ll need this information to file a dispute with your bank.

• Consider placing a fraud alert on your credit report: You can contact any one of the three credit bureaus — Equifax, Experian, and TransUnion — to place a fraud alert on all three of your credit reports. A fraud alert is free and notifies creditors to take extra steps to verify your identity before extending credit.

The Takeaway

Your account and routing numbers work together to identify your account and ensure that your money gets transferred from the right place or that you receive funds intended for you. If you’re confused about routing vs. account numbers, the routing number indicates the bank where your account is held, while the account number identifies your specific account at that bank.

Knowing the difference between these numbers, where to locate them, and how to protect them is vital to managing your finances securely.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 3.80% APY on SoFi Checking and Savings.

FAQ

Do you need both a routing and account number?

Typically, yes. Common transactions — like setting up direct deposits, making electronic payments, or transferring money between banks — require both a routing and account number. The routing number identifies your bank, while the account number specifies your individual account. Together, they ensure that funds are correctly transferred to or from the right institution and account.
That said, for some transactions (like in-branch deposits), just your account number may suffice, as the bank already knows its routing number.

What comes first on a check, a routing or account number?

Typically, when you look at the lower portion of a check (reading left to right), the routing number comes first, followed by the account number, and then the actual check number.

The routing number is a nine-digit code that identifies the bank, while the account number specifies your specific account within that bank. Checks are typically numbered to help with record-keeping.

Do I give my account number or routing number for a direct deposit?

For a direct deposit, you need to provide both your routing and account numbers. The routing number ensures the deposit is sent to the correct bank, while the account number directs the funds to your specific account. You may also be asked to provide a voided check.

What happens if I use the wrong routing or account number?

Using the wrong routing or account number can result in a failed transaction or funds being sent to the wrong account.
If your bank catches the mistake, it may reject the transaction. If your bank misses it and the account number belongs to someone else, the money could get deposited into the wrong account. If that occurs, you’ll want to contact your bank immediately to try to remedy the problem.

Are routing numbers the same across all branches of a bank?

Not necessarily. Smaller banks often have a single routing number for all branches. But if a bank has branches located in different states, routing numbers won’t be the same across all branches. Your routing number will be based on the branch where you first opened your account.

Photo credit: iStock/SeventyFour

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2025 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

SoFi members with direct deposit activity can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. SoFi members with direct deposit are eligible for other SoFi Plus benefits.

As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 3.80% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Separately, SoFi members who enroll in SoFi Plus by paying the SoFi Plus Subscription Fee every 30 days can also earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. For additional details, see the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus.

*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at sofi.com/legal/banking-fees/.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

SOBNK-Q125-084

Mar

2025

Guide to Cash Management Accounts (CMAs)

By Ashley Kilroy | Budgeting & Goals, Family Finances, money | Comments Off

A cash management account or CMA is a financial account offered by brokerage firms that combines some of the features of savings and checking accounts. Like a savings account, CMAs pay interest (often more than you would earn in a standard savings account). Like a checking account, CMAs provide access to checks and/or a debit card. In addition, CMAs are typically linked to brokerage accounts, making it easy to transfer funds you want to invest.

While CMAs can be convenient, they may also come with some potential downsides, such as monthly fees, minimums, and a lack of in-person banking options. And, you may be able to earn a higher interest rate elsewhere.

Is a CMA right for you? Our simple guide to cash management accounts can help you find out.

Key Points

• Cash management accounts, or CMAs, are offered by brokerage firms and combine checking and savings features.

• These accounts pay interest and offer easy fund transfers for investments.

• CMAs typically allow you to access and manage your account online, but may not offer branches you can visit.

• Pros include simplified money management and higher-than-average interest rates.

• Before opening a CMA, consider customer service, minimum balance requirements, and investment options.

What Are Cash Management Accounts?

Let’s explore what a cash management account is exactly. A CMA or cash management account provides a solution for managing your cash flow and your money. The cash inside the account usually earns interest, so your money can grow over time. You also may have checking-writing capabilities, debit card access, or a combination of both.

Some of these nonbanking institutions charge low or no fees, another attractive aspect of using a cash management account. However, they typically make their money by charging fees for other services, such as investing, retirement planning, or financial planning services.

While traditional banking accounts have similar benefits, the biggest draw to a cash management account is that you can bank and invest with one company. This way, you’re not toggling back and forth between several companies or platforms to manage your money.

💡 Quick Tip: Banish bank fees. Open a new bank account with SoFi and you’ll pay no overdraft, minimum balance, or any monthly fees.

How Do Cash Management Accounts Work?

Now that you know what a CMA is in big-picture terms, let’s drill down on how they work. Cash management accounts are interest-earning accounts that offer a safe place to keep your cash. Since investment firms and robo-advisors are not banks, they don’t keep your money at their financial institution. Instead, they partner with several banks and spread your deposit out among them.

As with traditional bank accounts, account holders can deposit funds, withdraw funds, and transfer money. You also typically have online access to your account, making it easy to check on and manage your CMA.

In addition, CMAs typically earn interest like savings accounts and have checking account capabilities. Therefore, they can act as a way to merge these accounts into one. However, some CMAs may not have features of both accounts, so check with the institution to determine what features are available.

What Are the Pros of Cash Management Accounts?

Understanding the benefits of using a cash management account can help you determine if this is the right banking solution for your needs. With that in mind, here are several advantages of using a cash management account.

Convenience

The most significant pull for consumers to open a cash management account is that they can keep their investments and banking under one umbrella. Keeping everything in one place can simplify your money management efforts.

Traditional Banking Features

When you open a cash management account, you typically have access to traditional banking features like:

• Direct deposit

• Complementary ATM networks

• Electronic bill pay

• Third-party payment site access

But before you open an account, make sure you check with the institution about their banking services. This way you can ensure they have everything you need.

FDIC Insured

The Federal Deposit Insurance Corporation (FDIC) protects your banking deposits from losses up to $250,000 per depositor, per insured bank, for each account ownership category.

So, in the unlikely event that your bank should fail, you can recover your funds (up to the insured limit). While nonbanking firms can’t offer FDIC insurance directly, their partner banks can extend coverage. Since nonbanks spread funds across several partner banks, each can offer up to $250,000 of FDIC insurance per depositor.

💡 Quick Tip: Don’t think too hard about your money. Automate your budgeting, saving, and spending with SoFi’s seamless and secure mobile banking app.

What Are the Cons of a Cash Management Account?

CMAs also come with some potential downsides. Here are some points to keep in mind as you decide whether a CMA is right for you.

Lower Interest Rates

While these accounts do offer some earnings, you will often find better rates at online banks. If you are planning on parking a large sum of cash in an account, it can literally pay to explore your options elsewhere and see what annual percentage rates (APYs) are available for online savings and checking accounts. You may find a better place to park your short-term savings than a CMA.

Fewer Features

Cash management accounts may not offer all the conveniences that come with standard checking accounts, such as bill pay, and may not fully replace a checking account.

No Physical Branches

Many cash management accounts are offered by online brokerages and robo-advisors, which means you won’t have brick-and-mortar locations to visit. If you are the kind of person who prefers personal interaction, this may be a significant issue for you.

Cash Management Accounts vs Checking Accounts

While cash management accounts offer similar services and features to traditional bank accounts, you might wonder what the differences are. If we break down CMAs compared to checking accounts further, these features are worth noting.

• Maintenance fees. Some CMAs don’t charge maintenance fees, but others may charge monthly fees routinely or when your balance dips below a certain threshold. This is also the case with traditional checking accounts.

• Interest earning. Many cash management accounts pay interest, and rates are often better than what you could earn in a standard savings account. This gives CMAs an edge over regular checking accounts, which typically pay little or no interest.

• Account integration. Investment firms and robo-advisors usually offer cash management accounts, as well as brokerage, or investment, accounts. You can usually link your CMA with your brokerage account, making it easy to move money and automate contributions. Traditional banks may also offer retirement and investment services. However, that’s not their primary business. Also, if you have your bank accounts and investment accounts under different roofs, there may be a time lag for transactions, which usually doesn’t happen with CMAs.

Considerations When Comparing Cash Management Accounts

If you’re thinking about opening a CMA, it’s a good idea to shop around and compare your options. Here are some things to keep in mind.

Customer Service

When you need an issue resolved with your money, it’s nice to know customer service is there to help. Check to make sure that the company you’re considering offers a robust customer service solution to assist you with all of your questions or concerns. For online firms, check out the hours that support is available and find out if you’ll be interacting with a human or an automated assistant.

Minimum Balance Requirement

CMAs can have minimum balance requirements to avoid fees and/or keep the account active. Therefore, you’ll want to determine these requirements in advance to see if you have the appropriate sum of cash to deposit.

Investment Management

Most of the institutions that offer cash management accounts offer investment services. If you’re looking to use their investment service, make sure you select a company you trust and feel comfortable with. You’ll also want to ensure the investments offered are suitable for your needs.

Is a Cash Management Account a Good Fit for You?

A CMA can be ideal for people who like to manage their investments and bank accounts under the same umbrella. It may make managing your money somewhat simpler and smoother.

But for those who feel a bit uncertain about using online institutions or mobile apps to complete their daily transactions, a traditional bank account may be a more viable solution. Also, if you would prefer to separate your investments and banking needs, a high-interest checking or savings account may make more sense that stashing your funds in a CMA.

The Takeaway

CMAs are interest-earning alternative solutions to traditional bank accounts like checking and saving accounts. Since investment firms usually offer CMAs, you can keep your investments and banking needs in one place, streamlining your money management efforts. As with most services, there are pros and cons to these accounts. Determining whether one is right for you will depend on your money management style and goals.

If you feel more comfortable with a savings and checking account held at a bank, SoFi offers a smart, money-savvy solution. Our online bank accounts, when opened with direct deposit, are fee-free and earn a competitive APY. Qualifying accounts can even access their paycheck up to two days early. We think it’s a great combination of convenience and money-growing features that you’ll love.

Ready to bank better? Come see what SoFi offers.

FAQ

What is the purpose of a cash management account?

Cash management accounts give consumers a way to earn interest and complete everyday banking transactions (like making purchases with a debit card and writing checks) while managing investments, all under one roof.

What type of account is cash management?

A cash management account is like a traditional bank account, except it’s offered by a non-banking firms, like an online investment firm or robo-advisor. You can complete transactions (direct deposit, withdrawals, check writing, etc.) and earn interest in the same way you would with a traditional checking or savings account.

Is a cash management account the same as a money market account?

No. While cash management accounts and money market accounts have similar features (like earning interest and providing access to debit cards and/or checks), they are not the same. Banks offer money market accounts, while nonbanks like brokerage firms and robo-advisors offer cash management accounts.

Photo credit: iStock/MicroStockHub

SOBNK-Q125-056

Mar

2025

How to Save for a Vacation: Creating a Travel Fund

By Stacey Leasca | Budgeting & Goals, Life & Career, money | No Comments

Whether your travel dreams have you strolling through Paris, eating dozens of flaky croissants, or cozied up in a cabin at a stunning state park, saving for vacation is an important step. To create a travel fund, you may need to determine how much cash you need to accrue; how to automate the process; and how to help your money grow as quickly as possible. Here, you’ll learn the step-by-steps for starting a vacation fund.

Key Points

• Saving for travel takes planning, but it can be smart to prioritize emergency savings before vacation funds.

• Open a separate, high-yield savings account for travel.

• Automate savings from paychecks to travel fund.

• Use financial windfalls like tax refunds and bonuses to boost savings.

• Earn extra money for future travel through side hustles like freelance work or by renting out your place when you travel.

The Importance of Emergency Savings

Sure, it can be tempting to pick up on a whim and travel somewhere, without even glancing at your checking account. But that can be somewhat risky business, financially speaking. And so can prioritizing a vacation fund when you don’t have much money in the bank.

Before you think about funding a vacation, you should consider saving for life’s emergencies first. And a prime way to do that is by establishing a healthy amount of money in your emergency fund.

To build an emergency fund, a general rule of thumb is to have enough money to cover at least three to six months’ worth of expenses socked away. It’s totally okay to start off with a small fund and build your way up over time. Even depositing $20 per paycheck into the fund can be a wise start. This account may be for a true emergency, such as a car breaking down, an unexpected move, paying rent after being laid off, or a visit to the emergency room. What isn’t a good use for your emergency fund? A sale on plane tickets to Hawaii doesn’t count, sorry to say.

You can use an emergency fund calculator to help you figure out exactly how much to save. And remember: This account may be for a true emergency, such as a car breaking down, an unexpected move, paying rent after being laid off, or a visit to the emergency room. What isn’t a good use for your emergency fund? A sale on plane tickets to Hawaii doesn’t count, sorry to say.

Beyond emergency funds, it may be a good idea to ensure you’ve paid off any high-interest debt before allocating your money toward a vacation.

How Much to Save for Vacation

Once your emergency reserves are on good footing, you can take the first step in saving for a vacation by opening a separate account earmarked for travel. Keeping it in the same bank as the rest of your money could allow you to easily keep track of how much you’ve saved. It can also make it a bit simpler to transfer extra cash into your vacation account.

However, don’t overlook the value of keeping your cash in a high-yield savings account, which can earn considerably more than a standard savings account. These accounts are often offered at online banks, which may no or low fees as well. That combination of higher interest rates and lower fees can help pump up your savings.

A couple of other tips:

• Many financial institutions will let you name the account, which is seriously worth doing. It might be harder to be motivated to contribute to account XXX924 than your “Valentine’s Day in Paris” Fund. Go ahead, and give it a good name so you know what you’re working towards.

• Another smart move is to automate savings. You can set up automatic deposits into this account each week or month, depending on your pay cycle and what you’re comfortable with. You could even allocate a specific amount to be auto deposited right from your paycheck. That way, the cash never even hits your checking account, where it can tempt you to go shopping and have a fancy dinner. You won’t see the money until you’re ready to go on vacation.

Now, about how much to save. Here are a couple of approaches to try:

• Some people like to establish an amount of their paycheck to siphon off into travel savings. Perhaps it’s 5% of your take-home pay, or an amount like $50. Once it hits a certain figure ($500 or $1,000), you can then dig in and start your specific planning.

• For many, though, building a budget makes the dream real. You can scout out transportation and lodging costs, among other items by doing online research. You can add food, entertainment, excursions, and other potential expenses and come up with the figure you’ll need. Then divide that by how long you have to save, and you’ve determined your monthly savings goal.

So if you need $2,400 for your trip and have eight months till the date you want to travel, you’ll need to set aside $300 per month.

Doing Some Research on Your Dream Vacation

As briefly mentioned, research can be the foundation of your trip planning. And it’s often a really fun enterprise, whether you are a moodboard or a Pinterest sort of person. Decide what kind of vacation you want to have — be it a surf, snow, hiking, adventure, leisure, city, or country escape — then start looking into destinations that suit your desires. Maybe a friend took a cool 30th birthday trip to Iceland that you want to emulate, or you are in search of a few budget-friendly spring break destinations. Start searching! Some guidelines:

• Once you pick a spot, you can look at things like average hotel pricing, average food cost, transportation costs (including the flight, drive, boat, or train there as well as a car rental, taxi, or ridesharing service for when you’re there), average excursion cost, and add in a bit extra for entertainment expenses.

• Don’t forget to budget for hidden fees, such as resort fees, rental fees, and taxes. You may want to call the hotel’s concierge to get those numbers if they aren’t displayed, as they can add up rather quickly. Also, you may want to ensure your number crunching includes an “extra” slush fund for those “just in case” moments.

(Also worth noting on the topic of hotels and money: Most hotels will put a hold on your credit card when you check in to cover incidental expenses and other potential charges. This can change your available credit, so keep that in mind.)

• If hotels look to be a bit too pricey in your intended destination, you could always look for cost-cutting accommodations. There are always hostels, and some are adding amenities these days that make them less barebones.

• You might consider places that will let you stay for free in exchange for services. You could try signing up on websites like Rover to swap dog sitting services in exchange for a free place to stay. Websites like Mind My House also bring together people looking for house sitters and those looking for accommodations. Check out the listings and see if any fit your vacation needs.

Recommended: Tips for Finding Travel Deals

Saving Consistently into Your Travel Fund

If you have an estimate of how much it will cost, now you just have to figure out how to save for a vacation. Consider these ideas:

• Dividing your projected vacation cost by the months you have to save and stashing cash away is a tried-and-true method. By doing so, you can watch your trip fund grow and get you closer to your trip.

• Some people like to use round-up apps or the “change jar” method to also boost their savings.

How to start a vacation fund is simple: You make that first deposit, But next, learn some other ways to keep building towards your travel goal.

Using Windfalls to Your Advantage

While working toward your vacation, you could use any financial windfalls to your advantage. Consider these sources:

• A tax refund

• A bonus at work

• A raise at your job

• Proceeds from selling your stuff, like electronics, kitchenware, or clothes you no longer need or use.

Putting this money into where you keep a travel fund is a great way to boost your savings.

Adding a Side Hustle to Your Routine

You could always create a windfall for yourself by taking on a low-cost side hustle as you save for your vacation.

Working a side job or taking on freelance work you have the skillset for could help you save money faster to get the vacation show on the road. And the best part is, if you save using your side gig money, you won’t even need to touch your savings or primary paycheck.

Some pointers:

• Think about what you’re after: Something that will help your career in the long-term, or perhaps something that will simply earn you a bit of quick cash?

• If you’re hoping it could help your career growth, you could try tackling a side job that’s connected to your goals. For example, if you’re hoping to be a writer, scout article writing or copywriting gigs. Want to be a photographer? Build a website and offer your services.

• If it’s just quick cash you need, think local and urgent. Could you sub in at a busy cafe on weekends or do odd-jobs through various apps like TaskRabbit or Fiverr?

• Decide how much you’re willing to put into a side hustle. Often, side gigs require you to work before or after your regular nine-to-five, which could mean giving up your nights and weekends. But, again, all that extra work could pay off for either your career or your short-term goals.

Recommended: How to Make Cash Quickly

Making a Little Extra Cash While on Vacation

You could always try putting your assets to work for you while you’re away to help pay for your vacation. If you own your home or apartment or your landlord allows it, you might rent your space on websites like Airbnb or VRBO. You may be able to earn a hefty sum.

Have a car? That can be rented out on websites like Turo, too.

The Takeaway

If you’re planning a vacation, dreaming about it and planning where you’ll go and what you’ll see can be a fun pursuit. But you’ll also need to save for it. That can be accomplished by saving from your paycheck, stashing away any windfalls, and putting energy towards earning additional money.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 3.80% APY on SoFi Checking and Savings.

FAQ

How does a vacation fund work?

A travel fund is an account that helps you save the amount needed to take a trip. Typically, you add to it regularly (manually or by automatically depositing some of your paycheck) until you reach your goal amount. Having the money in an interest-bearing account can help you grow your money more quickly.

Where should I put vacation money?

If you want to grow your trip fund money, it’s wise to put it in a savings account where it’s liquid but earning interest. Look for a secure bank that offers a healthy annual percentage yield (APY). These high-interest or high-yield accounts are often found with no fees and low or no minimum balance requirements at online banks. Because these banks don’t have bricks-and-mortar locations, they can pass the savings onto customers.

What is a reasonable vacation budget?

A reasonable vacation budget will depend on your particular plans. Are you going to a lavish resort in the Mediterranean for two weeks or to a cabin at a local park for the weekend? Whatever your travel style may be, making a budget is critical. By researching transportation, lodging, food, entertainment, and excursion costs in advance, you can likely figure out your savings goal.

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2025 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

SoFi members with direct deposit activity can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. SoFi members with direct deposit are eligible for other SoFi Plus benefits.

As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 3.80% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Separately, SoFi members who enroll in SoFi Plus by paying the SoFi Plus Subscription Fee every 30 days can also earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. For additional details, see the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus.

*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at sofi.com/legal/banking-fees/.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

This content is provided for informational and educational purposes only and should not be construed as financial advice.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Third Party Trademarks: Certified Financial Planner Board of Standards Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, CFP® (with plaque design), and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.

SOBNK-Q125-092

Mar

2025

Ideas for Making Money From Home

By Jamie Cattanach | Budgeting & Goals, Financial Independence, money | Comments Off

In today’s digital age, making money from home has gotten easier than ever. Whether you’re looking for a full-time income, a side hustle, or just some extra cash, there are plenty of opportunities to earn without leaving your house. The best option for you will depend on your skills, interests, and financial goals. Read on for inspiration.

33 Easy Ways to Make Extra Money from Home

This list of home-based business ideas can help earn income without stepping foot out your front door.

💡 Quick Tip: Make money easy. Open a bank account online so you can manage bills, deposits, transfers — all from one convenient app.

1. Test Websites

Most websites are well-designed and easy to use because they’re tested by real users — a service they get paid to do. Platforms like UserTesting and Userbrain will link you up with companies who need website testers, and you’ll earn money for each test you do. There are also opportunities to earn more money for live interviews about your experience.

2. Test Products

Products also need testers, and testing can be done at home, too. You might be able to earn extra cash by giving your opinion on gadgets, personal care products, and more. (Plus, you might get some free stuff in the bargain.)You can find product testing opportunities directly through large companies or using third-party sites like ProductReportCard and FocusGroups.org.

3. Take Surveys

Another way to make some extra money from home is by taking online surveys. You can tap this market through sites like Swagbucks, Survey Junkie, and MySurvey. Some platforms pay you in points you can later redeem for cash or gift cards, while others pay by check. You won’t get rich quick, but it can be worth exploring if you have a lot of free time.

4. Become a Voice Actor

If you’ve got a voice for radio — or an audiobook, video game, or the PA announcement at your local grocery store — you may be able to earn money doing voiceover work from the comfort of your own home. (Or more accurately, the comfort of your own closet, which is probably the most noise-insulated room in the house.)

5. Do Closed Captioning

If you’re a fast typist with the ability to pay close attention to speech, you might make a great transcriptionist or captioner. Companies like Rev make it possible to get paid for captioning video content, and you get to set your own hours.

6. Become a Translator

Are you fluent in a second language? If so, you may be able to put your language skills to work by becoming a professional translator. Popular platforms that post freelance translators gigs include: Fiverr, PeoplePerHour.com, Lionbridge, and Translate.com

7. Teach an Online Course

If you’re highly skilled in a certain area, chances are there’s someone out there who would pay to learn what you’re an expert at. Whether it’s creative writing, singing, or coding in JavaScript, you might be able to get paid for sharing your knowledge with platforms like Udemy, Teachable, or Thinkific.

Recommended: Money Management Guide

8. Become a Tutor

If you aced the SATs or ACTs or have expertise in a particular subject, you may be able leverage your skills by offering online tutoring to high school and college students. You could market your services in your local area or apply to work for an online tutoring company.

9. Offer Music Lessons

If you play an instrument or know how to sing, you may be able to turn your talent into cash by offering music lessons or being a vocal coach. You could teach local students in your home or offer lessons virtually.

10. Write a Book

Okay, okay: This one is not a quick, nor guaranteed, way to make money at home by any stretch. But if you’ve got the chops and the dedication, you might just actually write a marketable novel, memoir, or essay collection. Just know that as far as the money goes, it’s generally a slow burn.

11. Start a Blog

If you love to write but aren’t ready to take on a book, you might start a blog that focuses on something you’re good at, such as baking, being a mom, or rating restaurants. If your audience gets large enough, you could potentially make money through ads or affiliate marketing. A successful blog could also land you speaking gigs, public appearances, and other earning opportunities.

12. Become a Freelance Writer

Another way to use your writing skills to make money at home is to become a freelance writer, either on the side or full-time. It can be a tough industry to break into, but once you’ve established yourself, it’s possible to earn a living wage doing this work. Having examples of your published work is the best way to show a prospective client your writing skills. You might get started by writing a few pieces for a low (or even no) fee to build up your portfolio.

13. Do Freelance Copy Editing

If you’re a strong editor with a keen eye for detail and proper grammar, you might be able to earn money as a freelance copy editor. You can look for short-term gigs through freelance sites like Fiverr and Upwork. If you’d prefer something more long term, try a job board like Indeed.

14. Freelance as a Graphic Designer

If you have design skills, you could turn your creativity into cash by designing logos for businesses, graphics for company websites, and more. You’ll likely need a portfolio of your work to show prospective clients.

Recommended: Managing Your Money as a Freelancer

15. Become an SEO Consultant

Search engine optimization (SEO) is a service that companies will often pay mighty well for… after all, good rankings translate into more money in their pockets, too. To get consulting gigs, you’ll likely need to share success stories and metrics, whether for accounts you managed professionally in the past or your own personal account.

16. Become a Virtual Assistant

If you’re the kind of Type-A person whose Google calendar is comprehensive and color-coded, consider channeling those organizational skills into becoming a virtual assistant. Tasks might include making travel arrangements, scheduling appointments, managing invoices, and answering phone calls. You can not only do this from home but can often set your own hours. Try Fiverr, Upwork, and LinkedIn for leads.

17. Sell Your Crafts

If you already spend your downtime enjoying a craft like painting or knitting, why not consider placing your wares up for sale on a site like Etsy? Not only will your art bring smiles to other peoples’ faces, it might also be an easy and creative way to make extra money from home.

18. Design a T-shirt (or Mug, or Tote Bag)

Got a witty slogan, a riff on pop culture, or a beautiful image in mind that just has to be on a t-shirt? Make it happen! Websites like CafePress and CustomInk make it easy to create and sell your unique designs.

19. Become a YouTuber

If you’ve got something to say and are creative enough to say it with engaging video content (whether it’s dog grooming or fashion advice), YouTube can be a lucrative way to make money from home. Just keep in mind: This is a side-gig that can easily take a lot of time and require a considerable investment in audio/video equipment.

20. Stream Your Gaming Habits on Twitch

Earning money by playing video games might sound like a fantasy, but platforms like Twitch make it possible…provided you’re actually good (or at least entertaining to watch). You’ll need to have more than 50 followers and meet other marks to become what’s known as an affiliate and start earning cash via people subscribing to watch you.

💡 Quick Tip: Don’t think too hard about your money. Automate your budgeting, saving, and spending with SoFi’s seamless and secure mobile banking app.

21. Get Paid to Post on Insta

If you have an Instagram or other social media account with a strong following and often share products you love, why not get paid for it? You may be able to partner with your favorite brands and earn money for sharing information about their products. You might also get the chance to test out some new ones for free.

22. Sell Your Stuff

If you’re overdue for a closet clean-out, consider selling the stuff you don’t need anymore on a site like Craigslist or Facebook Marketplace. Be sure to take clear photos and do a search to find how much similar items sell for, so you can set a competitive price. Just be on the lookout for money scams that can crop up when buying and selling online.

23. Sell Your Photos

If you know your way around a DSLR or honestly even just an iPhone, you might be able to sell your stock-photo-worthy snaps for money. Platforms like Alamy and GettyImages are two places to sell or license your pictures.

24. Rent Out Your Clothes

Yes, this is real! Turn that prom or bridesmaid dress in your closet into income by renting it out to others. Peer-to-peer rental platforms like Tulerie and Pickle can help. Designer clothes are most in demand.

25. Rent Out Your Equipment

If you have a lawn mower, camping gear, snow blower, or any other piece of equipment you don’t use on the regular, you could be earning money by renting it out. Sites like Loanables and Fat Llama make it easy to list your items for rent. Bonus: Sharing items is a way to reduce our overall carbon footprint.

26. Rent Out Your Driveway

If you live in an area where there’s a shortage of parking spaces, such as a crowded metropolitan city, you could start a passive income stream by renting out your driveway through a platform like Neighbor or Spacer.

27. Do Data Entry

Are you a quick typist with great attention to detail? These days, companies who need data entry sometimes hire remote workers, which means you can populate those spreadsheets in the comfort of your own home.

28. Provide Customer Service

In today’s WFH world, you don’t necessarily have to commute to a crowded, noisy call center to get a job doing customer service. Many companies hire virtual customer service employees, including Amazon. Other than getting a good headset, this is a low-cost side hustle.

29. Do Medical Coding And Billing

Medical coding and billing might be tedious, but it generally pays well. And you don’t have to work on-site to do it. Many hospitals, healthcare companies, and medical practices hire at-home medical coders to help process patients through their systems. You can find leads through online job platforms.

30. Start a Podcast

It might be a long shot, but many successful podcasts started as a casual, at-home conversation between friends. If your subject matter is interesting enough to draw advertisers, it could become a fun way to earn money without a real job.

31. Start An At-home Daycare

Love kids? You could get paid to care for them by offering at-home daycare services for parents who need time to work or meet other commitments. Starting a business like this may require licensing and home modifications, but you can also hire out your services as a babysitter using an app like UrbanSitter, Care.com, or Bambino Sitters.

32. Become a Professional Pet-Sitter

Getting paid to hang out with puppies may sound like a dream, but it can be your reality if you charge for pet-sitting services. Apps like Rover make it easy to get started, but you can also just advertise around your neighborhood and get clients through word-of-mouth.

33. Rent Out Your Car

If your car is in good condition and you don’t need it every day, you might be able to make money by renting it out through a car-sharing app like Turo and HyreCar. Just make sure your insurance allows you to do this.

Tools to Help You Earn Money From Home

If you’re looking for a way to make money from home, these tools can help get you started.

Online Platforms for Freelancers

• Upwork: This popular freelance marketplace connects professionals with clients in need of writing, design, programming, and more.

• Fiverr: Freelancers can post their services and set their own pricing on this global marketplace.

• Toptal: An exclusive network of freelancers, Toptal is known for its rigorous screening process.

• Freelancer: Businesses post projects on this site; freelancers can then bid on them to try to win the work.

Apps to Rent or Sell Items

• Facebook Marketplace: This free platform can be great for selling a wide variety of items locally and is directly integrated with your Facebook profile.

• eBay: You can use this global online marketplace to auction or sell new and used items, including electronics, clothing, and collectibles.

• Poshmark: A fashion-focused app, poshmark can be a great place to sell your gently used clothing, shoes, and accessories.

• OfferUp: This app offers a quick and easy way to post items for sale in your local community.

• Fat Llama A peer-to-peer rental platform, Fat Llama allows users to rent out or borrow items like cameras, tools, and equipment.

Pros and Cons of Making Money from Home

Before you embark upon one of the ideas listed above, take a closer look at the pros and cons of earning income at home.

Advantages

Among the benefits of working from home are:

• Convenience

• Save time and money on commuting

• Don’t have to buy an office wardrobe

• Can set your own hours

• Not interrupted by office distractions

• Better work-life balance

• Potentially less stress (less “office politics”).

Disadvantages

That said, there are also downsides to working from home:

• Isolation/lack of social interaction

• Lack of teamwork/anyone to brainstorm with

• May end up working longer hours

• Communication issues if you use technology to stay in touch

• May not have office equipment you need

• Possibly more complicated taxes when you work from home

• Lack of motivation.

Alternatives to Making Money From Home

If you like the idea of flexibility and freedom, but don’t want to be at home all the time, here are some other options to consider.

Part-Time Jobs with Flexible Hours

These occupations often offer part-time positions with flexible scheduling:

• Bookkeeper

• Real estate agent

• Childcare provider

• Occupational therapist

• Speech pathologist

• Personal trainer

• Business consultant

• Fundraising manager

• Marketing or social media manager

• Events manager

Gig Economy Opportunities Outside the Home

Here are some side hustles that help you get out and about:

• Rideshare driving (Uber/Lyft) – Earn money by driving passengers to their destinations on your own schedule.

• Food delivery (DoorDash/Uber Eats/Grubhub) – Pick up and deliver restaurant orders to customers in your area.

• Grocery shopping (Instacart/Shipt) – Shop for and deliver groceries to customers who place orders through the app.

• Task-based work (TaskRabbit) – Complete various on-demand tasks like furniture assembly, moving help, or home repairs.

• Scooter charging (Bird/Lime) – Pick up, charge, and return electric scooters.

The Takeaway

Working from home can be a great way to earn extra income. As that money starts flowing in, you can help it grow (without doing anything at all) by choosing the right banking partner.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 3.80% APY on SoFi Checking and Savings.

FAQ

How can I make $1000 a week from home?

To make $1,000 a week from home, you might explore options like freelance writing, graphic design, web development, virtual assisting, online tutoring, and creating and selling digital courses. You may need to combine multiple income streams to reach that amount consistently.

How can I make $200 a day from home?

You might be able to make $200 a day working from home by freelancing online. You might be a writer, editor, SEO consultant, translator, tutor, medical coder, virtual assistant, or find other professional work that pays by the hour or day.

How can you make money fast but legally?

Some ways to legally make some quick money include: selling things you no longer need, walking dogs, driving for a ride/share app, delivering food, freelance writing and graphic design, tutoring, renting out your car, and (if you live in a popular urban area) renting out your driveway.

How do I balance multiple income streams from home?

Balancing multiple income streams requires organization. Some tips include: using scheduling tools like Google Calendar, setting clear boundaries for each job to avoid burnout, and mixing passive and active income streams. It’s also helpful to use a budgeting app like QuickBooks to keep track of expenses and earnings for each income stream. This can also help you assess which streams are most profitable and adjust your workload accordingly.

What tools or equipment do I need to work from home?

To work from home effectively, you generally need a reliable computer, high-speed internet, and a comfortable workspace with an ergonomic chair. You might also want to invest in a quality microphone and webcam to enhance virtual interactions. If you live in a noisy environment or neighborhood, you may also want to get noise-canceling headphones to block out distractions and improve your focus.

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2025 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

SoFi members with direct deposit activity can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. SoFi members with direct deposit are eligible for other SoFi Plus benefits.

As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 3.80% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Separately, SoFi members who enroll in SoFi Plus by paying the SoFi Plus Subscription Fee every 30 days can also earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. For additional details, see the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus.

*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at sofi.com/legal/banking-fees/.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

SOBNK-Q125-088

What Is a Financial Windfall

Examples of Financial Windfalls

3 Tips to Help You Make the Most of Your Money Windfall

Remember That Taxes May Be Due on Your Windfall

Understanding Tax Implications Based on the Source of the Windfall

What to Do With a $500 Windfall

1. Investing in Real Estate

2. Meeting With a Financial Advisor

3. Buying a New Wardrobe

4. Traveling Somewhere Cheap

5. Investing in a Certificate of Deposit

6. Getting Your Car Fixed

7. Buying Renter’s Insurance

8. Purchasing a Life Insurance Policy

Get up to $300 when you bank with SoFi.

9. Taking a Professional Development Class

What to Do With a $1,000 Windfall

10. Getting Started on Your Emergency Fund

11. Hiring an Estate Planning Lawyer

12. Opening a 529 Plan

13. Doing Home Improvements

14. Donating It

15. Opening a High-Yield Savings Account

16. Saving for Retirement

17. Investing in Your Side Hustle

What to Do With a $5,000 Windfall

18. Saving Up for a Down Payment

19. Paying Off Credit Card Debt

20. Investing Via Robo-Advisors

21. Investing in Blue-Chip Stocks

22. Investing in Bonds

23. Taking a Vacation

What to Do With a $10,000+ Windfall

24. Opening a Money Market Account

25. Paying Off Student Loan Debt

26. Trying Peer-to-Peer Lending

27. Making Mortgage Payments

28. Going to College

29. Starting Your Business

30. Increase Contributions to Your Retirement Account

31. Make a Move

The Takeaway

FAQ

What amount of money is considered a windfall?

What to do with a $50,000 windfall?

What can you do with a $100K windfall?

Should you save or invest a windfall?

How can you avoid common mistakes with a windfall?

You may also be interested in:

What Is a Routing Number?

Purpose of a Routing Number in Banking

What Is an Account Number?

Role of an Account Number in Transactions

Get up to $300 when you bank with SoFi.

When You’ll Need a Routing Number or Account Number

Finding Your Bank Routing and Account Numbers

Looking at a Check

Contacting Your Bank

Accessing Your Online Account

Protecting Your Routing and Account Numbers

Tips for Keeping Your Banking Information Secure

What to Do if Your Information Is Compromised

The Takeaway

FAQ

Do you need both a routing and account number?

What comes first on a check, a routing or account number?

Do I give my account number or routing number for a direct deposit?

What happens if I use the wrong routing or account number?

Are routing numbers the same across all branches of a bank?

What Are Cash Management Accounts?

How Do Cash Management Accounts Work?

Get up to $300 when you bank with SoFi.

What Are the Pros of Cash Management Accounts?

Convenience

Traditional Banking Features

FDIC Insured

What Are the Cons of a Cash Management Account?

Lower Interest Rates

Fewer Features

No Physical Branches